Question

mr.sharma makes a payment in advance for purchase amounting rupees 9500 and get discount of rupees 500 on 29 march 2019 and received goods on 3rd april 2019 now pass the journal entry for 2018-19 and 2019-20 Including VAT @ 4%

Answer 1

1. cash A/c Dr. 9500

To, Advance A/c. 9500

2. Sales. A/c. Dr. 10000

To, Advance A/c. 9500

To, Discount A/c 500